October 24, 2008

Lower soy imports in October as compared to September in China

Chinese buyers have reported the arrival of 722,900 tonnes of soy within October 1-15, which is only half the 1.35 million tonnes reported for September 16-30 as lower edible oil prices lessened imports by the world's top buyer.

Traders attributed China's record soy imports in September at more than 4 million tonnes to an advanced customs declaration by buyers seeking to enjoy a lower import duty that expired last month.

The soy import duty is now 3 percent again, having been cut to 1 percent last year on concerns about decade-high inflation.

The ministry estimated October imports would be 1.82 million tonnes, lower than traders' estimation of 2 to 3 million tonnes. Previously, the ministry's estimates have also fallen short of actual arrivals, which one official attributed to some buyers not being informed about the new reporting system.